Perhaps the problem is in my Modul8 Preferences - presently Preferences > Misc > Movie folder maximum size is set at 640 x480 ... So I will change this to 1280 size output.

Another general 'stills' question is - in photoshop what dpi or other settings are preferable for loading, i.e 72 / 150 / 300. This will surely affect file size / processing speed / quality of very large projected images.